BC MICS under the New Mortgage Services Act: MIC Exemptions Under BC’s Mortgage Services Act vs. BC Securities Act
Mortgage Investment Corporations (MICs) in British Columbia operate at the intersection of two regulatory regimes: the new Mortgage Services Act (MSA) for mortgage brokering/lending, and the BC Securities Act for investment activities. Below is a comparative analysis of how exemptions under each framework apply to MICs, highlighting overlaps, differences, and recent changes. The core point is that MICs generally must comply with both regimes – there are limited exemptions to completely exclude them from either – so understanding both sets of rules is crucial.
Regulation on Foreign Ownership of Agricultural Land
Foreign investors are potentially subject to two tiers of regulation: (1) federal foreign investment legislation provides an initial hurdle towards foreign in-bound investment and the application of such legislation may vary in an ever-changing geopolitical climate, and (2) foreign investors must navigate provincial and territorial regulations to determine whether an investment in agricultural land is […]
Extension of the Foreign Buyer’s Ban
The Government of Canada has announced a two-year extension to an existing ban on foreign ownership of Canadian housing. The Prohibition on the Purchase of Residential Property by Non-Canadians Act (the Act) was set to expire at the end of 2024, it will now be extended to January 1, 2027. For further information read here https://www.jdsupra.com/legalnews/canada-extends-ban-on-foreign-home-7301260/
Regulatory Updates for the Private Lending Industry — Ontario and the Financial Services Regulatory Authority
CAPL has quarterly meetings with the Financial Services Regulatory Authority of Ontario (FSRA), in which we are able to discuss issues relating to the mortgage brokering sector. We can report that FSRA is very actively focussing regulatory initiatives on private mortgage lending. Here is an update on some of those initiatives: Mortgage Suitability Consultation FSRA […]
Regulatory Update: Criminal Interest Rate – Proposed 35% APR
Proposed Criminal Interest Rate Regulations providing exemptions now published. On December 23, 2023, the federal government published proposed Criminal Interest Regulations which specify certain exemptions to the new criminal interest rate ceiling contained in the Criminal Code. If you recall from previous discussions, the government introduced sweeping changes to the criminal interest provisions, which currently […]
New Federal Consultation on Criminal Interest Rate
The Department of Finance is launching a new consultation on further lowering the criminal rate of interest, the payday lending exemption and other questions related to access to small loans. The federal government announced intended amendments to the Criminal Code in its 2023 Budget to lower the criminal rate of interest from the equivalent of 47 […]
Regulatory Update: AML for the Mortgage Industry and more
MBRCC initiatives impacting co-brokering and mortgage product suitability recommendations The Mortgage Brokers’ Regulatory Council of Canada (MBRCC) has published its strategic plan for the next three years (2023-2026). Some of the strategic priorities of the MBRCC focus on licensing issues when operating across multiple provincial jurisdictions. Contrary to some popular views, co-brokering or submission desk arrangements will not resolve […]
Regulatory Update: AML for the Mortgage Industry and more
The Government of Canada has launched a public consultation to examine ways to improve Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime. Comments or feedback in response to the consultation paper are due by August 1, 2023. The consultation paper can be found at this link >> The consultation asks some specific questions impacting the real estate […]
The Federal Government is planning to lower the criminal interest rate to 35%
The Federal Government is planning to lower the criminal interest rate to 35%. This will impact private and alternative lenders, particularly lenders that provide loans on short terms, for example, bridge loans. CAPL has been advised that the Federal Government has tabled Notice of a Ways and Means Motion for Budget 2023 in the House of Commons. […]
Current Consultations: Mortgage Services now included in AML regime and Comprehensive Alberta Review
Federal AML rules – As many now know, the federal government has now published new amending regulations to federal anti-money laundering legislation (the Proceeds of Crime (Money Laundering) and Terrorist Financing Act – PCMLTFA). The new regulations impose a broad set of compliance requirements on mortgage lenders, brokers and administrators, which encompass (amongst other requirements) […]